Walmart acquired a 77% stake in Flipkart for approximately $16 billion. This deal faced criticism from the All India Online Vendors Association (AIOVA) who argued it threatened domestic retailers and filed objections with the Competition Commission of India (CCI). However, the CCI approved the combination. Additionally, the Confederation of All India Traders (CAIT) raised complaints against Flipkart for violating foreign exchange regulations and filed appeals challenging CCI's approval, arguing Flipkart and Walmart had previously engaged in predatory activities. The National Company Law Appellate Tribunal ultimately dismissed the appeal.

1. CASE STUDY
FlipKart & Walmart Deal
BY CS ROHIT KUMAR
Follow My Blog: www.decoding.co.in

2. COMPANIES INVOLVED
● Walmart International Holdings Inc.
● An american multinational retail Corporation
● Flipkart Private Limited Company
● An e-commerce company based in Bangluru
● Found by Mr. Sachin Bansal and Mr Binny Bansal in the
year 2007

3. FACTS OF DEAL
● Walmart acquired 77% stake in Flipkart for appx value
$16 Billion (appx INR 1 Lakh Crore)

4. TOUGH RIDE
● Flipkart-Walmart deal faced a lot of criticism form All India
Online Vendors Association (AIOVA)
● Threat for AIOVA was entry of Foreign retailer.
● AIOVA had filed petition with CCI to raise objections on
this deal
● However, CCI sanctioned this combination on August 8,
2018 [section 31(1) of Competition Act]

5. RELEVANT CONCEPT OF COMPETITION ACT
2002
● Anti-competitive agreement [section 3(4)]
● Abuse of Dominant position [Section 4(1)]
● Indulgent of practices which results into denial of market
access. [S.4(2)(c)]
● Predatory Price [explanation (b) to section 4(2)(e)]

6. BATTLE IS NOT OVER YET
● CAIT raised a complaint against Flipkart to violate FEMA
provisions.
● CAIT also filed an appeal in NCLAT [Appellate Body over
CCI] against the approval given by CCI.
● Further, CAIT also contended that in past years Flipkart &
Walmart have undertaken predatory activities
● NCLAT on January 29 2019 dismissed the appeal and
observed that allegations were leveled against Flipkart
but the same not pleaded as a part to appeal.

7. FOOD FOR YOUR THOUGHT
“Do you really think such kinds of deal really
a threat to our domestic market”
Please comment!

8. THANK YOU!
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